ALIGN TECHNOLOGY INCALGN

ALIGN TECHNOLOGY INC Goodwill & Intangibles Disclosure

10-KFiled Feb 27, 20262 min read
Goodwill and Intangible Assets
Goodwill

The change in the carrying value of goodwill for the years ended December 31, 2025 and 2024, categorized by reportable segment, is as follows (in thousands):
Clear AlignerSystems and ServicesTotal
Balance as of December 31, 2023
$111,086 $308,444 $419,530 
Additions from acquisition47,576 — 47,576 
Foreign currency translation adjustments(6,017)(18,459)(24,476)
Balance as of December 31, 2024
152,645 289,985 442,630 
Foreign currency translation adjustments11,610 37,593 49,203 
Balance as of December 31, 2025
$164,255 $327,578 $491,833 

We completed our annual goodwill impairment assessment in 2025 and 2024 and determined there were no impairments.

Finite-Lived Intangible Assets

Acquired finite-lived intangible assets, excluding intangibles that were fully amortized, are as follows (in thousands):
Weighted Average Amortization Period (in years)
Gross Carrying Amount as of
December 31, 2025
Accumulated
Amortization		Accumulated Impairment Loss
Net Carrying
Value as of
December 31, 2025
Existing technology11$146,651 $(67,138)$— $79,513 
Customer relationships1021,500 (12,363)— 9,137 
Trademarks and tradenames1
79,800 (8,050)— 1,750 
Patents 12480 (320)— 160 
$178,431 $(87,871)$— $90,560 
Foreign currency translation adjustments3,373 
Total intangible assets, net $93,933 
1 The Weighted Average Amortization Period decreased from 10 years to 7 years due to an intangible asset with a useful life of 15 years becoming fully amortized in 2025.

Weighted Average Amortization Period (in years)
Gross Carrying
Amount as of
December 31, 2024
Accumulated
Amortization 		Accumulated Impairment Loss
Net Carrying
Value as of
December 31, 2024
Existing technology11$146,651 $(52,238)$— $94,413 
Customer relationships1021,500 (10,079)— 11,421 
Trademarks and tradenames1016,600 (9,255)(4,122)3,223 
Patents12480 (280)— 200 
$185,231 $(71,852)$(4,122)$109,257 
Foreign currency translation adjustments(5,769)
Total intangible assets, net $103,488 

Of the $146.7 million recorded as Existing technology intangible assets as of December 31, 2025, $47.0 million was acquired during the first quarter of 2024 as part of the Cubicure Acquisition. The existing technology acquired in the Cubicure Acquisition had an estimated useful life of 13 years, which had the effect of increasing the weighted average amortization period from approximately 10 years as of December 31, 2023 to approximately 11 years as of December 31, 2024. Refer to Note 5 “Business Combination”.

For the years ended December 31, 2025 and 2024, we did not identify any impairment triggering events that would indicate that the carrying value of our finite-lived intangible assets was not recoverable.
The total estimated future amortization expense for these acquired finite-lived intangible assets as of December 31, 2025 is as follows (in thousands):

Fiscal YearAmortization
2026$17,922 
202715,607 
202814,505 
202914,505 
20306,328 
Thereafter21,693 
Total
$90,560 
Amortization expense was $18.8 million, $18.9 million and $16.4 million for the years ended December 31, 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Feb 28, 2018

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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